Section 38

Section 38 of the Indian Contract Act, 1872, deals with the effect of becoming impossible or unlawful of a contingent agreement. It states: "If the event on which a contingent agreement is to take effect becomes impossible, or if the act which is to be done becomes unlawful, or if the performance of the act becomes unlawful, the agreement becomes void." This implies that if the event on which a contingent agreement is to take effect becomes impossible, or if the act which is to be done becomes unlawful, or if the performance of the act becomes unlawful, the agreement becomes void. The section further explains that if the agreement becomes void, the parties are not bound to perform their obligations under the agreement. The Indian courts have interpreted this section to mean that contingent agreements can become void if the event on which they are contingent becomes impossible or unlawful.